The papers, which have been seen by The Sunday Telegraph, say that actions overseas must in future be designed to reduce the threat of terrorism.

They were put before a Cabinet committee on security earlier this month and have been circulated around ministers and security chiefs.

Their contents will increase pressure on the Prime Minister, who has denied Britain's actions in Iraq and Afghanistan are responsible for terrorist attacks against the UK.

The documents say that, in an ideal world, "the Muslim would not perceive the UK and its foreign policies as hostile". They demand a "significant reduction in the number and intensity of the regional conflicts that fuel terror activity".

The papers then set out a list of perfect scenarios in a series of trouble-spots - including stability for Iraq and Afghanistan -10 years from now.

As well as Israel living in "peaceful coexistence" with its Arab neighbours and Iran devoid of nuclear weapons, they say that there should be "no new failed states, dictatorships or wars" in the Middle East and South Asia.

"If all or most of the above were in place, threats from other sources of Islamic terrorism (eg Indonesia, Philippines, Nigeria) would be manageable or on the way to resolution," they conclude.

Actions should be designed to reduce terrorism, "especially that in or directed against the UK".

A Number 10 spokesman later stressed that the documents had not been drawn up by Downing Street officials. They are understood to have originated from the Cabinet Office.